On June 24 I wrote a post on whether or not RIM was still a good buy. I spoke to Youssef Zohny, a fund manager I interviewed for Canadian Business’s Investor 500 issue, to get an update on whether or not he still thinks RIM is worth purchasing. (He does.)
Today I received some comments from Duncan Anderson, managing director and portfolio manager at Manulife Asset Management, who also told people to consider RIM in the I-500 story. He still thinks it’s a solid stock pick.
Like Zohny, Anderson says RIM’s upcoming QNX operating system will make the company more competitive, while the international market will continue to drive the company’s growth.
RIM has “a lot of hidden value that the market is not giving it credit for,” says Anderson. He points to its own secure network and its numerous patents as advantages it has over the competition.
Anderson and Zohny aren’t the only two who think RIM is a good investment. Analysts at Raymond James & Associates recently put an Outperform rating on the company. Its six- to 12-month target price is $60; the stock is trading at $27 today.
Raymond James analyst Steven Li likes the company, he says, because its transition phase is nearing its end. Its next set of handsets are being tested by 23 carriers around the world, and a global launch is expected late in Q3.
It’s next generation Playbook, a 4G model, is also expected to hit stores in the fall, which should boost the company’s bottom line. RIM, he adds, is also still “very important” to business owners and many consumers.
“We reiterate our Outperform rating and $60 target price,” he writes. “Our target price represents 10 times forward 2012 earnings—roughly in-line with its handset peers.”
Do you think it’s a good idea to own RIM? Let me know in the comments.